Dalio was speaking at a Wall Street Journal event on Tuesday (US time):
Said the big government spending raises the risks of inflation and a devaluation of the U.S. dollar.
- “The big issue is the amounts of money that have been produced and put into the system” Mr. Such risks have to “be balanced carefully. Productivity is the key” to keeping the economy from overheating
- described current stock-market valuations as a bubble, though not one driven by debt.
- “There’s two types of bubbles,” Mr. Dalio said. “There’s the debt bubble when the debt time comes back and you can’t pay for it, and then you have the bubble bursting. And the other kind of bubble is the one where there’s just so much money and they don’t tighten it as much, and you lose the value of money. I think we’re more in the second type of bubble.”
Here is the link to the piece for much more. Its the Journal, so it may be gated.
